Estate Planning For Blended Families In Canada

Successful blended family estate planning is a matter of setting and communicating goals learning the available legal strategies implement ing the chosen documents and setting appropriate expec tations for the client.

Estate planning for blended families in canada.

At least that s been the case since the 2011 canadian census was released which found that 12 6 of all families in the country are blended. The failure to engage in such planning increases the likelihood that someone will. A real example of a blended family. Blended families are families where one or both spouses or common law partners have been in a previous relationship and have children from that relationship.

The modern family is more complicated and may consist of parents who are in second or third relationships. A blended family cries out for pro active estate planning. Blended families are those where the partners are not the biological parents of all of the children. One in 10 children live in stepfamilies according to the most recent canadian census held in 2011 the first time the census has counted stepfamilies.

Common pitfalls in estate planning for blended families 1 the traditional concept of the nuclear family i e mother father and one or more children of a single relationship has evolved over the years. The number of blended families is growing steadily in canada. Apart from the day to day challenges blended families like the fictional brady s face additional hurdles when addressing their estate planning. This is resolved using lifetime interest trusts.

We explain the details in this article. It is estimated that more than half of u s. Blended families are the new normal. It presents a particular challenge for wills where everything could pass to a spouse who subsequently disinherits children.

By judy martel when it comes to estate planning for a blended family the concept of yours mine and ours can complicate the process to the point that family dynamics become permanently strained. Estate planning for blended families blended families are increasingly common and as an advisor you ll likely have clients with children from one or more prior relationships. A relative of mine remarried in her 50s. Estate planning for blended families can be a particular challenge for inexperienced amateurs and even professionals because the standard clauses of a will may have unintended consequences.

In most blended family situations each partner wants to ensure that when they die their children as well as their new love will be treated fairly and will receive as.